Armadale, the AIM quoted investment company focused on natural resource
projects in Africa, is pleased to announce that it has commenced
drilling at the Mpokoto Gold Project (‘Mpokoto’ or ‘the Project’) in the
Katanga Province in the south of the Democratic Republic of the Congo.
The Company also continues to advance Phase 2 of the Scoping Study for
Mpokoto and expects to publish results in Q3 2014.

Overview

Drill Programme

Drilling aims to increase the resource potential of the known gold
mineralisation at Mpokoto – current resource of 507,000oz of contained
gold (‘Au’) and an Exploration Target of 10Mt-15Mt at 1.2g/t-1.5g/t Au

Increase the overall Mineral Resource Estimate at the Project, in
particular the overall size of the Oxide resource which was the
subject of the recent Stage 1 Scoping Study

Raise the category of certain zones of target mineralisation and
inferred resource to the indicated resource category – this would
allow for the inclusion of this resource in a proposed feasibility
study and, in turn, in a Mineral Reserve for the Project

Additional Auger drilling to a shallow depth is also being undertaken
to provide further metallurgical samples of shallow oxide ore, per
Phase 1 of the Scoping Study – oxide ore is expected to support the
first five years of gold production at Mpokoto

Metallurgical testing will be conducted to provide a better
understanding of the ore body, increase confidence in the plant design
and to assess the possibility of raising recoveries from the plant for
the oxide ores, which presently stand at 90%

Both drill programmes expected to be completed by the end of July 2014
with results available thereafter

Results anticipated to further underpin Mpokoto’s value as a robust
low cost gold development project with attractive economic fundamentals

Phase 1 Scoping Study focussed on the shallow oxide ore body and
demonstrated a post-tax net present value of US$33.0 million and
internal rate of return of 141% based on a discount rate of 8% and a
gold price of US$1,250 per ounce (see announcement 7 April 2014)

Justin Lewis, Director of Armadale, said: “Mpokoto has already proven
its value as a low cost gold project, boasting highly attractive returns
and near term production potential and I am confident that this
exploration programme will further unlock the Project’s inherent value.
Our primary goal is to commence commercial gold production before the
end of 2015 and with results expected from Stage 2 of the Scoping Study,
together with drill results, during the next quarter, we are looking
forward to consecutive valuation events.”

**ENDS**

Enquiries:

Armadale Capital

Justin Lewis, Director

+44 7973 732603

Charles Zorab, Investor Relations

Nomad and broker: finnCap Limited

Stuart Andrews

+44 207 220 0500

Christopher Raggett

Press relations: St Brides Media & Finance Ltd.

Susie Geliher

+44 207 236 1177

Charlotte Heap

Notes

Armadale Capital Plc is focussed on investing in and developing a
portfolio of investments, targeting the natural resources and/or
infrastructure sectors in Africa. The Company, led by a team with
operational experience and a strong track record in Africa, has a
strategy of identifying high growth businesses where it can take an
active role in their advancement.

Armadale is focused on the development of the development of the Mpokoto
Gold project in the Democratic Republic of the Congo, to which it holds
the right to an 80% interest. Armadale also currently holds
approximately a 37% interest in Mine Restoration Investments Ltd, a
South African listed company, which aims to develop profitable
operations in South Africa through the briquetting and sale of coal
fines in KwaZulu Natal and an acid mine drainage project in the
Witwatersrand basins, as well as a number of other quoted investments.